The initial public offering (IPO) of Quadrant Future Tek has officially opened for public subscription today, January 7, 2025. The IPO has already garnered significant interest, with reports indicating that it was fully subscribed within minutes of opening.
Key Highlights of the Quadrant Future Tek IPO
- Issue Size: The company aims to raise ₹290 crore through this IPO, which consists entirely of a fresh issue of 1 crore equity shares.
- Price Band: Shares are being offered in the range of ₹275 to ₹290 each, with a minimum lot size of 50 shares, requiring an investment of at least ₹14,500.
- Subscription Status: As of 10:57 AM IST, the IPO received bids for 1,93,57,350 shares, reflecting a subscription rate of 3.34 times against the available shares. The retail investor segment saw a remarkable subscription rate of 13.79 times.
Strong Grey Market Premium (GMP)
The grey market premium for Quadrant Future Tek’s shares has surged to approximately ₹210, translating to a premium of about 72.41% over the upper end of the issue price. This strong GMP indicates robust demand and positive sentiment among investors.
Financial Performance and Use of Proceeds
Quadrant Future Tek reported a net profit of ₹14.71 crore for FY24, up from ₹13.90 crore in FY23. The company plans to utilize the proceeds from the IPO for:
- Funding long-term working capital requirements
- Capital expenditures for developing an electronic interlocking system
- Repayment of outstanding working capital loans
- General corporate purposes
Positive Reviews from Brokerages
Several brokerage firms have given favorable ratings for the IPO:
- BP Equities: Recommends subscribing due to strong growth potential in the Indian Train Control System market.
- SBI Securities: Also advises a subscription based on robust industry forecasts and strategic partnerships.
- Canara Bank Securities: Suggests a long-term subscription due to competitive valuation and growth prospects.
Investment Recommendations
Several brokerage firms have provided favorable reviews for Quadrant Future Tek’s IPO:
- BP Equities: Recommends subscribing to the IPO due to strong growth potential in the Indian Train Control System market, which is projected to grow significantly in the coming years.
- SBI Securities: Also advises a subscription based on robust industry forecasts and strategic partnerships that enhance its market position.
- Canara Bank Securities: Suggests a long-term subscription due to competitive valuation and growth prospects.
- StoxBox and Ventura Securities: Both recommend subscribing to the IPO, highlighting Quadrant Future Tek’s strategic partnerships and solid financial performance as key factors supporting their positive outlook.
Conclusion
With its IPO opening today and showing strong demand in both the primary and grey markets, Quadrant Future Tek is positioned as an attractive investment opportunity. Investors are encouraged to consider this offering as it aligns with the growing demand for railway safety solutions in India.
Disclaimer
This article is based on information available as of January 7, 2025. Investors should perform their due diligence and consult with financial advisors before making any investment decisions regarding Quadrant Future Tek’s IPO. In summary, as Quadrant Future Tek embarks on its public offering journey, it stands poised to attract significant interest from both retail and institutional investors alike.
